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February 17, 2022updated 18 Feb 2022 12:22pm

Atom Bank raises £75m ahead of potential IPO

UK-based digital lender Atom Bank has raised more than £75m as it seeks to expand business ahead of a potential initial public offering (IPO).

The company secured the funding in new equity priced at 70p per share. The investment was led by BBVA alongside Toscafund and Infinity Investment Partners.

The round is now open to other existing shareholders.

In April last year, Atom raised £40m. The latest raising brings the total amount to more than £115m.

Atom CEO Mark Mullen said: “Our investors are now backing our continued growth. This capital will allow Atom to build on the progress we have made, and to keep offering real competition for people who want to own their own home, grow their own businesses and – at a time of rapidly rising costs – save for the future.

“It is also a fundamental next step on our journey toward IPO.”

The company did not share a timeframe for the potential market listing. However, the Financial Times reported that it may take place next year.

Atom Bank launched in operations in 2016. The digital bank has no physical branches with services available through app.

The company offers savings, mortgages and loans for small and medium-sized enterprises (SMEs).

According to Atom, the lender has passed £3bn of mortgage completions. Last year, Atom’s on-balance sheet lending to SMEs crossed £1bn.

The company also recorded a 16% growth in total customer deposits £2.5bn in 2021.

In November last year, Atom introduced a four-day working week for all its employees.